White paper: Best practices for maximizing offboarding success

Abstract

Traditionally turnover has been seen as a “bad” thing. In other words, it has been “framed as a win
or lose scenario.” However, employees leave organizations for many reasons including poor
performance, layoffs, retirements, and the desire to pursue new opportunities and to develop and
expand their skills. Each of these factors have both pros and cons to them. For example, removing
low-performing employees can strengthen an organization. Right sizing an organization can help it
become more effective and focused. And, even losing a strong performer via retirement or to
another organization does not mean that you’ve lost that employee forever and it gives an existing
employee the opportunity to grow. More and more organizations are developing alumni networks for
former employees. And, when it makes sense, rehiring these alumni at a later point in time can be a
benefit for the organization and these “boomerang” employees. Even if the employee does not
return to the fold, they may be more inclined to refer the products or serve as a customer in the
future than those who have not been employees.

Full text

Talya N. Bauer, Cameron Professor of Management
Portland State University
June 2015
Best Practices for Maximizing
Offboarding Success

SUCCESSFACTORS / WHITE PAPER
BEST PRACTICES FOR MAXIMIZING OFFBOARDING SUCCESS
Best Practices for Maximizing
Offboarding Success
Talya N. Bauer, Cameron Professor of Management
Portland State University
June 2015
The Business Case for Strategic Offboarding
Traditionally turnover has been seen as a “bad” thing. In other words, it has been “framed as a win
or lose scenario.”1 However, employees leave organizations for many reasons including poor
performance, layoffs, retirements, and the desire to pursue new opportunities and to develop and
expand their skills. Each of these factors have both pros and cons to them. For example, removing
low-performing employees can strengthen an organization. Right sizing an organization can help it
become more effective and focused. And, even losing a strong performer via retirement or to
another organization does not mean that you’ve lost that employee forever and it gives an existing
employee the opportunity to grow. More and more organizations are developing alumni networks for
former employees. And, when it makes sense, rehiring these alumni at a later point in time can be a
benefit for the organization and these “boomerang” employees. Even if the employee does not
return to the fold, they may be more inclined to refer the products or serve as a customer in the
future than those who have not been employees.
Millions of employees depart their organizations each year. While some organizations tend to invest
considerable time, energy, and money into recruiting, selecting, onboarding, and training new
employees, offboarding continues to be a neglected part of the employee life cycle. This is
unfortunate because when an employee leaves, he/she takes with them a great deal of human
capital in the form of knowledge and skills developed on the job. To the degree that employees may
consider returning at some future date, companies can benefit from maintaining positive
relationships with those who leave the organization. New estimates indicate that boomerang
employees make up between 10% and 20% of organizational hires2 and the trend continues to
increase.3 In addition, estimates are that between 33% and 67% of recruitment costs can be saved
when hiring a boomerang employee.4 And, the benefits don’t stop there, as hiring back former
employees can add back skills, enhance creativity, help reinforce culture and even be used as a tool
for recruiting.5
Consulting firms have been at the top of this trend in terms of developing alumni networks. For
example, Deloitte has reported that their policy of hiring alumni (past employees) has saved them
$3.8 million in search firm fees per year.6 Similarly, Shell Oil Company has invested in an online
networking platform for former employees in their alumni network.7 Clearly there is a pattern for
companies to embrace strategic offboarding.
So when considering the offboarding process, we want to offer the following section for a list of do’s
and don’ts to factor into decisions regarding the offboarding process.
Boomerang
employees make
up between
10% and 20% of
organizational
hires.2

SUCCESSFACTORS / WHITE PAPER
BEST PRACTICES FOR MAXIMIZING OFFBOARDING SUCCESS
Offboarding Do’s
1. Keep effective offboarding records.
2. Conduct and analyze exit interviews.
3. Create and maintain a vibrant alumni network program.
4. Create a recruitment strategy around boomerang employees.
5. Leverage technology.
When it comes to effective offboarding best practices, there are several do’s as summarized above.
Keeping effective records, conducting and analyzing exit interviews, creating and maintaining alumni
networks, and including boomerang employees in the recruitment plan are all important best
practices. Leveraging technology can aid with all of these.
Sample exit interview questions include:8
• What made you look for another job?
• How did the job match your expectations?
• Did you feel that the work you were doing aligned with your personal goals and interests?
• Did you have the tools and resources you needed to effectively do the job?
• Would you recommend this as a great place for a friend to work?
Offboarding Don’ts
1. Don’t take departures personally but realize employees may depending on the situation.
2. Don’t close the door completely—maintain relationships.
3. Don’t forget that retiring workers may appreciate the opportunity to be helpful in the future.
4. Don’t just file exit interview information.
5. Don’t forget that exiting employees may be future customers or clients or sources of future
talent/referrals.
Conclusion
In conclusion, successful offboarding serves to make the employee feel as good about his or her
departure as possible and also serves to enhance the employment brand and future recruitment
and client source for organizations. Organizations able to offboard employees effectively set
themselves up for future success. The use of technology to accomplish the twin goals of individuals
and organizational success is critical in today’s competitive landscape.
Author Biography
Talya N. Bauer (Ph.D., Purdue University) is the Cameron Professor of Management at Portland
State University in Portland, Oregon as well as the Program Director for The Conference Board’s
Onboarding Talent Council. She is an award-winning teacher who conducts research about
relationships at work in general and recruitment, selection, and onboarding in specific. She has
published in the Academy of Management Journal, Journal of Applied Psychology, Journal of
Management, and Personnel Psychology, works with organizations, and has been a Visiting Scholar
in France, Spain, and at Google’s headquarters in Mountain View, CA. She is the former Editor of
the Journal of Management and incoming Associate Editor at the Journal of Applied Psychology.
She serves on the editorial boards for the Journal of Management and Personnel Psychology. Her
work is cited by numerous media outlets such as New York Times, BusinessWeek, Wall Street
Journal, and Harvard Business Review.
Hiring alumni
has saved them
$3.8 million in
search firm fees
per year.6

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Endnotes
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